Toll of Eldercare on Working Caregivers

•  The percentage of adult children providing personal care and/or financial assistance to a parent has more than tripled over the past 15 years. Currently,a quarter of adult children, mainly Baby Boomers, provide these types of careto a parent.
•  The total estimated aggregate lost wages, pension, and Social Securitybenefits of these caregivers of parents is nearly $3 trillion.
•  For women, the total individual amount of lost wages due to leaving thelabor force early because of caregiving responsibilities equals $142,693. Theestimated impact of caregiving on lost Social Security benefits is $131,351.A very conservative estimated impact on pensions is approximately $50,000.Thus, in total, the cost impact of caregiving on the individual female caregiverin terms of lost wages and Social Security benefits equals $324,044.
• For men, the total individual amount of lost wages due to leaving thelabor force early because of caregiving responsibilities equals $89,107. The estimated impact of caregiving on lost Social Security benefits is $144,609.Adding in a conservative estimate of the impact on pensions at $50,000, thetotal impact equals $283,716 for men, or $303,880 for the average male orfemale caregiver 50+ who cares for a parent.Working and non-working adult children are almost equally as likely to provide care to parents in need.
•  Overall, caregiving sons and daughters provide comparable care in many respects, but daughters are more likely to provide basic care and sons are more likely to provide financial assistance. 
• Adult children 50+ who work and provide care to a parent are more likely to have fair or poor health than those who do not provide care to their parents.

In  the current issue of Journal Of Aging & Social Policy, the article,Are Baby Boomers Who Care for Their Older Parents Planning for Their Own Future Long-Term Care Needs? examines associations between caregiver status and outcomes related to awareness and anticipation of future long-term care (LTC) needs using 2007 Connecticut Long-Term Care Needs Assessment survey data. Key point:

• Baby boomers that were adult child caregivers  vs baby boomers who were not,  more likely to anticipate some future LTC needs and to have considered certain financing strategies.
• Although baby boomer adult child caregivers more readily anticipate some future LTC needs, they are not taking specific actions.

The MetLife Mature Market Institute has released a publication this past summer, “Planning Tips: Financial Considerations for Family Caregivers,” to help  Boomers consider important financial consequences of caregiving and take precautions to protect future financial security:

1.  Think twice about leaving your job to provide care as it will impact your lifetime wealth and future employment prospects
   
2.  Check with your employer to determine what benefits are offered, and how you would replace them, should you curtail your employment
   
3.  Take stock of what you have and your expenses for caregiving 
   
4.  Look into public benefits, Become knowledgeable about the government programs, Medicare and Medicaid.   >> Illinois Dept. on Aging
   
5.  Calculate what it would cost to keep your loved one at home
6.  Consider enlisting the services of a geriatric care manage
7.  Be aware of possible elder financial abuse and take precaution
8.  Discuss your loved one’s legal, financial, and medical wishes
9.  Create a budget for yourself, for your future retirement expenses

Sources:

Assessing the costs to caregivers. (2011). Westchester County Business Journal, 47(47), 23. 

Finkelstein, E. S., Reid, M., Kleppinger, A., Pillemer, K., & Robison, J. (2012). Are Baby Boomers Who Care for Their Older Parents Planning for Their Own Future Long-Term Care Needs?. Journal Of Aging & Social Policy, 24(1), 29-45. 

MetLife. (0007, December). MetLife Mature Market Institute Releases Financial Planning Tips for Working Caregivers. Business Wire (English).

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